International cryptocurrency service provider, Binance has been fined a hefty sum by the Central Bank of the Netherlands (DNB) as a penalty for offering cryptocurrency services without obtaining the standard regulatory approval to operate in the European nation.

The Dutch authorities officially announced on Monday, 18 July 2022 that the regulators imposed the administrative fine on Binance in April 2022. The fine amount is about €3.3 million and there is a set deadline for it to be paid.

The DNB stated that any company that wants to offer any cryptocurrency products and services has to register with the Dutch Central Bank in compliance with the European Money Laundering and Terrorist Financing Prevention Act that governs the Dutch financial ecosystem.

The DNB also mentioned that they had previously issued a public warning to Binance on 18, August 2021. That warning was not heeded, hence the fine. The DNB also revealed that the fine imposed was heavy because of Binance’s large trading volumes. The DNB revealed that Binance had large trading volumes in the Netherlands with its daily trading volumes reaching up to $13.7 billion.

The DNB also stated that the increased penalty was also due to Binance’s prolonged violations. According to the regulator, Binance started the violations in May 2020 (which was also when the DNB introduced the registration obligation) and lasted until December 2021 when the bank closed the investigation.

The DNB considers the violations very seriously. The Central Bank also said that Binance has formally applied for the operational license and the process is now being addressed. The regulators also announced that they have reduced the total amount of the fine by 5% as the exchange has moved to comply with the law and is now transparent with its operations.

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